Family firms benefit from outside help

Family businesses need to recruit the best people to grow and prosper. Andrew Stone looks at how to bring in an outsider without causing friction

THE Bolton baker Warburtons has been a family-owned business for five generations.

Family members still hold senior management positions, but for two generations the firm has used senior, non-family executives to help it grow and prosper, and in May a non- family member took over as managing director.

Its executive chairman, Jonathan Warburton, sees it as an obvious way to do business: “It’s very simple; the family’s interests are best served by bringing in the best people.

“There are no jobs for the boys here,” he said. “We are surrounded by people who are better at their jobs than we are. Why wouldn’t you use the best people?” It may seem obvious to Warburton, but many family firms still find it hard to bring in outsiders. A study by the BDO Centre for Family Business found that 40% had all-family boards and 60% had no non-executive directors.